SME Bank Unveils Sustainability Roadmap 2.0, Targets RM10 Bln In Sustainable Financing By 2030
KUALA LUMPUR, Oct 29 (Bernama) -- The Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) is aiming for RM10 billion in sustainable financing and RM1 billion in green financing by 2030, as outlined in its Sustainability Roadmap 2.0.
The seven-year plan aims to address climate-related risks and aligns with SME Bank’s long-term sustainability goals.
It follows the success of Sustainability Roadmap 1.0, which operated from 2021 to 2023 and approved RM5.89 billion in sustainable financing across key affirmative segments.
It contributed approximately 95 per cent (or RM6.17 billion) of the bank’s total approvals for 2022 and 2023.
“The new roadmap is supported by innovative financing proposals, particularly a RM100 million Sustainability Fund announced in Budget 2025,” said SME Bank acting group president/chief executive officer Datuk Dr Mohammad Hardee Ibrahim at the launch of the Sustainability Roadmap 2.0, here today.
The launch was officiated by Deputy Minister of Entrepreneur Development and Cooperatives Datuk Seri R. Ramanan.
He highlighted that the plan aims for carbon neutrality by 2030, reinforcing Malaysia’s commitment to the net zero carbon agenda by 2050.
“This initiative positions Malaysia as a leader in sustainable and green financing within ASEAN,” said Ramanan.
In a statement today, the bank stated that the roadmap is divided into three phases: the first focuses on regulatory compliance, the second on integrating sustainability practices into SME Bank’s operations, and the third on advancing sustainability initiatives for maximum impact and efficiency.
SME Bank believes that the roadmap will gradually reduce fuel consumption and electricity emissions over the next seven years to achieve carbon neutrality by 2030.
The roadmap includes seven targets linked to three sustainability pillars and four long-term goals, ensuring continuous monitoring of climate-related risks.
It aligns with Bank Negara Malaysia’s (BNM) Climate Risk Management and Scenario Analysis (CRMSA) policy document.
SME Bank also offers a range of green initiatives, such as green financing for eligible customers, funded by BNM through the Low Carbon Transition Facility (LCTF) and the High Technology and Green Facility (HTG).
-- BERNAMA
